Bitcoin

<ul><li>Bitcoin&#39;s impending &#39;death cross&#39; may mislead bears as BOJ downplays rate hikes, supporting a potential bullish trend in the market.</li><li>The BOJ&#39;s decision to keep rates steady could benefit Bitcoin and other risk assets, contributing to a rise in market indices like the Nikkei.</li><li>The unwinding of yen carry trades has led to Bitcoin&#39;s recent price drop, impacting broader financial markets and causing risk aversion.</li></ul>Bitcoin&#39;s (<a href="https://cryptotale.org/bitcoin-rsi-at-lows-potential-reversal-or-consolidation/" rel="noopener noreferrer nofollow">BTC</a>) imminent &#39;death cross&#39; might once again mislead bears, as the Bank of Japan (BOJ) minimizes the risk of a near-term rate hike. Early Wednesday, BOJ Governor Shinichi Uchida <a href="https://www.japantimes.co.jp/business/2024/08/07/markets/boj-dovish-signal/" rel="noopener noreferrer nofollow">stated</a> the central bank would maintain current borrowing costs amid market instability. This stance weakens the case for further unwinding of &#34;yen carry trades,&#34; impacting risk assets, including Bitcoin.Consequently, the death cross, a bearish pattern where Bitcoin&#39;s 50-day moving average (SMA) drops below its 200-day SMA, may not have the expected impact. Bitcoin&#39;s price briefly exceeded $57,300 after Uchida&#39;s remarks, as the Japanese yen (JPY) fell to 148 per U.S. dollar (USD) from 145 per USD. Additionally, Japan&#39;s Nikkei index surged by 4%, signaling a risk reset. Futures for the S&amp;P 500 increased by 0.8%.The yen carry trade involves borrowing cheap yen and investing in higher-yielding currencies or assets. This strategy gained popularity as the BOJ maintained low rates while other central banks, including the Fed, raised rates to fight inflation. Last Wednesday, the BOJ&#39;s first rate increase in 17 years led to an unwinding of these trades, causing Bitcoin to drop from $66,000 to $50,000 within five days.<a href="https://cryptotale.org/bitcoins-death-cross-may-mislead-bears-boj-eases-rate-hike/" rel="noopener noreferrer nofollow">Read more on Cryptotale.</a>Visit the links for more information <a href="https://cryptotale.org/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://twitter.com/cryptotalemedia" rel="noopener noreferrer nofollow">Twitter </a>| <a href="https://t.me/cryptotale_news" rel="noopener noreferrer nofollow">Telegram </a>| <a href="https://www.instagram.com/cryptotalenews/" rel="noopener noreferrer nofollow">Instagram </a>|

Bitcoin's Death Cross May Mislead Bears, BOJ Eases Rate Hike

CryptoTale

Other articles published on Aug 7, 2024

What is Neiro Memecoin?

India doesn’t intend to regulate crypto sales and purchases

Crypto Market Today: Is This Just a Correction or the Start of a Bear Market?

Crypto Market Recovery🚀$60k Bitcoin Next?

Argentina Gearing Up to Be the Next Crypto Superpower

‘Something is happening’ — Bitcoin hodlers scooped $23B in the past 30 days

Join our free newsletter for daily crypto updates!